Hua Hai Pharmaceutical Injects RMB 2 Billion via Debt-to-Equity Conversion into Huaao Bio, Plans Spin-off IPO

Apr 29, 2026 20:02 CST Updated 20:02

Huahai Pharmaceutical

Medical and Health Product Provider

Huaota

Biological New Drug Developer

On April 29, Huahai Pharmaceutical announced that it plans to increase the capital of its subsidiary, Huaota, by converting 20 billion yuan of debt held in Shanghai Huaota Biopharmaceutical Co., Ltd.HuaotaThe direct shareholding ratio will increase from 79.69% to 87.07%. Although this capital increase can effectively reduce the overall debt scale of Huaota and improve its financial situation to a certain extent, it cannot directly bring funds to Huaota. In the future production and operation process, Huaota may be affected by macroeconomic conditions, industry environment, and market competition.Due to the influence of various factors, the business condition and earnings are uncertain. Investors are advised to be aware of the investment risks. After friendly negotiations among all parties, the pre-investment valuation of Huaota's current round of capital increase is determined to be 3.5 billion yuan, with a post-investment valuation of 5.5 billion yuan.Yuan. In 2024, Huaota completed a 200 million yuan financing round, with a post-investment valuation of 3.2 billion yuan. (¥286 Million! Wang Jingyi Acquires 67% Equity of Huahai Tianheng）

SameIn order to better promote the development of Huahai Pharmaceutical's biotech innovation drug R&D platform, fully leverage the role of capital markets in optimizing resource allocation, broaden financing channels, and accelerate breakthrough progress in the innovative drug business, thereby enhancing the company’s overall profitability and core competitiveness, it is proposed to plan the spin-off listing of the controlling subsidiary, Shanghai Huaota Biopharmaceutical Co., Ltd. ("Huaota").

Huaota was established in September 2013. Since its inception, Huaota has been deeply engaged in the research and development of innovative macromolecular drugs, focusing on two major fields: oncology and autoimmune diseases. Indications include several high-incidence and difficult-to-treat disease areas such as moderate to severe psoriasis, ankylosing spondylitis, endometrial cancer, non-small cell lung cancer, colorectal cancer, and triple-negative breast cancer. After years of in-depth development, Huaota has built an integrated biopharmaceutical R&D platform and system covering early-stage research, pilot production, clinical trials, patent management, and registration applications. It has also established drug R&D platforms for monoclonal antibodies, bispecific antibodies, fusion proteins, and ADCs, as well as pilot platforms for drug substances and formulations that comply with GMP standards, providing resource support and technical assurance for the development of various innovative and competitive antibody drugs.

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